Liability
/ˌlaɪəˈbɪləti/
Definitions
- (n.) Legal responsibility for one's acts or omissions, resulting in obligation to compensate or perform.
The company accepted liability for the injury caused by its defective product.
- (n.) Financial debt or obligation owed by a person or entity.
The firm's liabilities exceed its assets on the balance sheet.
Forms
- liabilities
Related terms
See also
Commentary
Liability often requires clear delineation between contractual and tort duties; precise definitions mitigate disputes about scope and extent of obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.